On July 1, 2023, Masterwear issued $700,000 of 12% bonds, dated July 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in three years. The market interest rate for bonds of similar risk and maturity is 14%. You purchased the entire bond issue with the intention to hold to maturity. The fair value of Masterwear bonds was $710,000 on December 31, 2023. Provide the required journal entries in 2023